👨🏻💻🔻 Tech Layoffs Continue to Break Records
Hi all,
Hope you’re having a great weekend. I got invited to a Colin & Samir Canon Creator Workshop on the 30th in Los Angeles! If you don’t know who they are - they are a duo of creators/podcasters who break down the latest in the Creator Economy every week. Whenever I visit LA, I like getting a hotel on the west side of the 405 in LA because I went to college in that area and it always feels like a second home. Plus the açaí bowls in that area are bomb.
I have been enjoying my time in San Francisco a bit more this week. I intended to go to the St. Patrick’s Day parade yesterday but unfortunately we missed it because collectively me and some friends were running late.
In content news, we’ve been producing two YouTube videos a week for the past few weeks and so far it’s been a blast - I hope you have been enjoying the increased number of videos we’ve been releasing. On the shorts/Tik Tok/Reels front, I need to be a bit more disciplined and better with releasing videos on there because I also know a lot of people look to those platforms for their financial information too.
This week’s Sunday Primer is quite comprehensive, we're seeing some shifts in the market such as tech layoffs, a change in the home buying process in America, and EV sales might have an incoming catalyst. We also have the Federal Reserve meeting this week on the 19th/20th that I plan on keeping you updated on.
Enjoy!
— Humphrey, Tim & Rickie
Market Report
Strategists Split on Market Direction
Strategists including Bank of America’s Michael Hartnett and JPMorgan’s Marko Kolanovic see evidence of a bubble forming but other analysts such as Societe Generale’s strategists see support for recent stock valuations and believe that the S&P 500 could rise 20% more before any downtrend.
One of the cases against a market bubble is that unprofitable tech companies have significantly underperformed, shedding light on a market where investors emphasize profitability over ‘growth at any cost’.
Tech Sector Sees Most Layoffs Since the Dot-Com Crash
The tech sector is experiencing its most significant layoffs since the 2001 dot-com crash, with over 50,000 workers laid off from more than 200 companies since the beginning of the year. This trend is an extension of 2023's substantial job cuts, where nearly 260,000 employees were let go from almost 1,200 tech firms.
Despite the challenges, Wall Street has responded positively, driving tech stocks to new highs with the expectation that cost reductions and efficiency improvements, particularly through AI, will boost profits.
Home Buying Process Completely Changed with New NAR Settlement
The National Association of Realtors (NAR) has agreed to a $418 million settlement to resolve claims that the industry conspired to keep agent commissions high.
The settlement will eliminate rules requiring upfront offers of payment to buyers' agents in listings, allowing home buyers to negotiate fees directly and potentially bypass agents altogether, which could reduce commission rates and impact the number of agents in the industry.
Biden Set to Crack Down on Auto Emissions to Accelerate EV Sales
The Biden administration is about to introduce the most stringent pollution limits yet on the nation's cars and light trucks, with the EPA's new regulations aimed at significantly boosting EV sales to meet climate goals.
The proposed rules are expected to require electric models to constitute approximately two-thirds of car and light truck sales by 2032, a substantial increase from current levels.
While the regulations are designed to reduce smog-forming pollutants and carbon dioxide emissions, the EPA also made adjustments to the initial proposal to make near-term emission reductions less stringent.